Who is bailor and bailee in contract?

As per the section 148 of the Indian Contract Act, 1872, a bailment is a contract where one person delivers goods to another person for some purpose. The person delivering the goods is the Bailor and the person receiving the goods is the Bailee.

What are the 3 types of Bailments?

There are three types of bailments—those that benefit both parties, those that benefit only the bailor, and those that only benefit the bailee.

Who is a bailee in business law?

The person to whom they are delivered is called the “bailee”. Explanation: If a person already in possession of the goods of another contract to hold them as a bailee, he thereby becomes the bailee, and the owner becomes the bailor of such goods, although they may not have been delivered by way of bailment.

What is gratuitous bailment in contract?

When a bailment is made without any consideration of benefit to the bailor or to the bailee, it is referred to as gratuitous bailment. In simple terms, it is a bailment without any consideration.

What is the relationship between bailor and bailee?

A bailor transfers possession, but not ownership, of a good to another party, known as the bailee, under an agreement known legally as bailment. While the good is in the bailee’s possession, the bailor is still the rightful owner.

What is the difference between bailor and bailee?

Bailor refers to the original property owner, while bailee refers to the person who temporarily has possession of the property.

Do Bailments always benefit the bailee?

A bailment is created for the sole benefit of the bailee when both parties agree the property temporarily in the bailee’s custody is to be used to his or her own advantage without giving anything to the bailor in return. The loan of a book from a library is a bailment for the sole benefit of the bailee.

Who is a gratuitous bailee?

1. Gratuitous Bailment. A bailment with no considerations is called a gratuitous bailment. In this kind of bailment neither the bailor, nor the bailee is entitled to any remuneration or reward.

What does Bailee stand for?

A bailee is an individual who temporarily gains possession, but not ownership, of a good or other property. The bailee, who is also called a custodian, is entrusted with the possession of the good or property by another individual known as the bailor.

Who can be called a bailor?

A bailor is an individual who temporarily relinquishes possession but not ownership of a good or other property under a bailment agreement.

What is gratuitous bailment with example?

Gratuitous bailment is a type of bailment in which the bailee receives no compensation. For example, borrowing a friend’s car. A gratuitous bailee is liable for loss of the property only if the loss is caused by the bailee’s gross negligence.

What’s the difference between a bailor and a bailee?

Bailor refers to the original property owner, while bailee refers to the person who temporarily has possession of the property. Click to see full answer Considering this, who is bailor and bailee? A bailor is an individual who temporarily relinquishes possession but not ownership of a good or other property under a bailment.

What are the rights and duties of a bailee?

Rights and Duties of Bailee and Bailor in a Contract of Bailment. (A Bailor’s duty is a bailee’s right and a bailee’s duty is bailor’s right.) Duties of bailee (Bailor’s right); A bailee has to observe the following duties: Duty to take reasonable care of the goods bailed. (Section 151-152)

Who is the bailor and who is delivering the goods?

The person delivering the goods is the Bailor and the person receiving the goods is the Bailee. After the accomplishment of the purpose, the Bailee needs to return these goods to the Bailor or dispose of them according to the directions of the Bailor. Let us now discuss the duties of bailee and bailor.

Can a bailor recover compensation from a bailee?

(ii) The bailor may recover compensation for the loss caused due to unauthorized use of goods; According to section 154, If the bailee makes such use of goods which is contrary to the conditions of bailment, and there happens any damage to the goods due to such unauthorize use, the bailee is liable to compensate bailor for such loss.